Day to Day of a multifamily investor

[Strom Lee]

I'm curious what the day to day looks like for someone who invests in multifamily properties. I'm gathering information for my first purchase, so I'd like to see the kinds of things involved in running this kind of investment, and if it's possible with a full-time job. Ideally, I'd like to be in the 10+ unit market, but maybe down to 6 units, depending on the level of involvement.

Thank you!

[Spencer Gray]

It depends on how active of an investor you want to be and there certainly is a wide spectrum.  That being said, no matter how passive you want to be there is no such thing as being 100% passive and hands off. the closer you are to being hands off you do so at your own risk. 

On one end of the spectrum would be a "passive" investor who invests their capital as debt via a note or as a limited partner taking an equity position in the holding company of the property, usually via syndication . In this scenario the investor still has to put some time in to evaluate opportunities and sponsors as well as track performance and stay on top of the sponsor/operator. Lots of investors do this and have time for a full time job as well. 

On the other end of the spectrum is operating more like a traditional business, full time. This could involve sourcing deals, raising funds, operating a property management company, operating construction company, operating an asset management firm, private equity firm, etc. This can be done in addition to another job but is more difficult. 

For me personally on any given day I can be be found - 

Communicating with my team (CPA, attorney, brokers, lenders)

Underwriting opportunities

Networking with investors and other real estate professionals 

Reading/listening to podcasts/audio books and continuing to educate myself

Touring prospect properties

Touring assets in our portfolio

Meetings/calls with partners

Admin work